Deere & Co. is laying off dozens of workers at a production plant in Ottumwa, Iowa, after struggling with tractor and equipment sales in recent months.
Approximately 75 workers, or 13% of the plant’s workforce, will lose their jobs effective Feb. 7, according to a recent WARN notice. The Ottumwa plant just reopened after closing for the month of December due to sluggish demand for hay and forage equipment, the Des Moines Register reported.
“To remain globally competitive, we must continue making workforce adjustments as needed to our manufacturing footprint,” a Deere spokesperson told Mekong Farmer via email.
The Moline, Illinois-based tractor giant recently lowered its 2025 earnings projections to $5 billion, citing challenging market conditions. For comparison, company earnings were $10.1 billion in 2023.
Currently, 575 people work at Deere’s Ottumwa Works plant, according to a spokesperson.
A previously announced round of layoffs affecting 112 workers at Deere’s Waterloo, Iowa, facility took effect this week. The layoffs mark the first cuts of the new year for a company that reduced its production and corporate workforce by the thousands in 2024.
As crop farmers struggle with income declines, agricultural equipment manufacturers have actively reduced production in an attempt to align inventory levels with customer demand. Deere, Agco and others are expecting challenging conditions through at least the first half of 2025.